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SECOND DIVISION
NEIL B. AGUILAR and RUBEN
CALIMBAS,
Petitioners,
- versus -
LIGHTBRINGERS CREDIT
COOPERATIVE,
Respondent.
Promulgated:
JAN 1 2 lCTT5
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DECISION
MENDOZA, J.:
This is a petition for review on certiorari filed by petitioners Neil B.
Aguilar (Aguilar) and Ruben Calimbas (Calimbas), seeking to reverse and
set aside the April 5, 2013 1 and October 9, 2013 2 Resolutions of the Court
of Appeals (CA) in CA-G.R. SP No. 128914, which denied the petition for
review outright, assailing the January 2, 2013 Decision 3 of the Regional
Trial Court, Branch 5, Dinalupihan, Bataan (RTC) and the May 9, 2012
Decision4 of the First Municipal Circuit Trial Court, Dinalupihan-Hermosa,
Bataan (MCTC).
Designated Acting member in lieu of Associate Justice Arturo D. Brion, per Special Order No. 1910,
dated January 12, 2015.
1
Penned by Associate Justice Mario V. Lopez with Associate Justice Amy C. Lazaro-Javier and Associate
Justice Socorro B. Inting, concurring; rollo, pp. 135-136.
2
Id. at 137-138.
3
Penned by Executive Judge Jose Ener S. Fernando; id. at 51-55 and 57-61.
4
Penned by Presiding Judge Franco Paulo R. Arago; id. at 62-66 and 67-71.
DECISION
In the lower courts, one of the issues involved was the proper
application of the rules when a party does not appear in the scheduled pretrial conference despite due notice. In this petition, the dismissal by the CA
of the petition filed under Rule 42 for failure to attach the entire records has
also been put to question, aside from the veracity of indebtedness issue.
The Facts
This case stemmed from the three (3) complaints for sum of money
separately filed by respondent Lightbringers Credit Cooperative (respondent)
on July 14, 2008 against petitioners Aguilar and Calimbas, and one Perlita
Tantiangco (Tantiangco) which were consolidated before the First
Municipal Circuit Trial Court, Dinalupihan, Bataan (MCTC). The
complaints alleged that Tantiangco, Aguilar and Calimbas were members of
the cooperative who borrowed the following funds:
1. In Civil Case No. 1428, Tantiangco allegedly borrowed
206,315.71 as evidenced by Cash Disbursement Voucher No.
4010 but the net loan was only 45,862.00 as supported by
PNB Check No. 0000005133.5
2. In Civil Case No. 1429, petitioner Calimbas allegedly borrowed
202,800.18 as evidenced by Cash Disbursement Voucher No.
3962 but the net loan was only 60,024.00 as supported by
PNB Check No. 0000005088;6
3. In Civil Case No. 1430, petitioner Aguilar allegedly borrowed
126,849.00 as evidenced by Cash Disbursement Voucher No.
3902 but the net loan was only 76,152.00 as supported by PNB
Check No. 0000005026;7
Id. at 107.
Id. at 82.
7
Id. at 73.
8
Id. at 96-97.
6
DECISION
its sole witness. In his testimony, Manalili explained that the discrepancy
between the amounts of the loan reflected in the checks and those in the cash
disbursement vouchers were due to the accumulated interests from previous
outstanding obligations, withheld share capital, as well as the service and
miscellaneous fees. He stated, however, that it was their bookkeeper who
could best explain the details.
Aguilar and Calimbas insisted that they should have the right to crossexamine the witness of respondent, notwithstanding the fact that these cases
were being heard ex parte. In the interest of justice, the MCTC directed the
counsels of the parties to submit their respective position papers on the issue
of whether or not a party who had been declared as in default might still
participate in the trial of the case. Only respondent, however, complied with
the directive. In its Order,9 dated April 27, 2011, the MCTC held that since
the proceedings were being heard ex parte, the petitioners who had been
declared as in default had no right to participate therein and to crossexamine the witnesses. Thereafter, respondent filed its formal offer of
evidence.10
MCTC Ruling
On May 9, 2012, the MCTC resolved the consolidated cases in three
separate decisions. In Civil Case No. 1428, 11 the MCTC dismissed the
complaint against Tantiangco because there was no showing that she
received the amount being claimed. Moreover, the PNB check was made
payable to cash and was encashed by a certain Violeta Aguilar. There was,
however, no evidence that she gave the proceeds to Tantiangco. Further, the
dates indicated in the cash disbursement voucher and the PNB check varied
from each other and suggested that the voucher could refer to a different
loan.
The decisions in Civil Case No. 142912 and 1430,13 however, found
both Calimbas and Aguilar liable to respondent for their respective debts.
The PNB checks issued to the petitioners proved the existence of the loan
transactions. Their receipts of the loan were proven by their signatures
appearing on the dorsal portions of the checks as well as on the cash
disbursement vouchers. As a matter of practice, banks would allow the
encashment of checks only by the named payee and subject to the
presentation of proper identification. Nonetheless, the MCTC ruled that only
the amount shown in the PNB check must be awarded because respondent
9
Id. at 102-103.
Id. at 104-106.
11
Id. at 107-111.
12
Id. at 62-66.
13
Id. at 67-71.
10
DECISION
failed to present its bookkeeper to justify the higher amounts being claimed.
The court also awarded attorneys fees in favor of respondent. The
dispositive portion of the decision in Civil Case No. 1429 reads:
WHEREFORE, premises considered, judgment is hereby
rendered in plaintiffs favor and against the defendant, ordering the
latter to pay plaintiff the amount of 60,024.00 with interest at the
rate of 12% per annum from April 4, 2007 until fully paid, plus
15,000.00 as attorneys fees.
Costs against the defendant.
SO ORDERED.14
On July 12, 2012, a notice of appeal16 was filed by the petitioners, and
on August 15, 2012, they filed their joint memorandum for appeal17 before
the Regional Trial Court, Branch 5, Bataan (RTC). Aguilar and Calimbas
argued out that had they been allowed to present evidence, they would have
established that the loan documents were bogus. Respondent produced
documents to appear that it had new borrowers but did not lend any amount
to them. Attached to the joint memorandum were photocopies of the dorsal
portions of the PNB checks which showed that these checks were to be
deposited back to respondents bank account.
RTC Ruling
On January 2, 2013, the RTC rendered separate decisions in Civil
Case No. DH-1300-1218 and Civil Case No. DH-1299-1219 which affirmed
the MCTC decisions. It held that the PNB checks were concrete evidence of
the indebtedness of the petitioners to respondent. The RTC relied on the
14
Id. at 66.
Id. at 71.
16
Id. at 112.
17
Id. at 114-132.
18
Id. at 51-55.
19
Id. at 57-61.
15
DECISION
On January 18, 2013, the petitioners filed their joint motion for
reconsideration/new trial20 before the RTC. Aguilar and Calimbas reiterated
their position that they did not receive the proceeds of the checks. As an
alternative prayer, petitioners moved that the RTC remand the case to the
MCTC for a new trial on account of the Sinumpaang Salaysay of Arcenit
Dela Torre, the bookkeeper of respondent.
On February 11, 2013, the RTC issued separate orders21 denying the
motion of the petitioners. It explained that all the issues were already passed
upon and the supposed newly discovered evidence was already available
during appeal, but the petitioners failed to present the same in time.
CA Ruling
Aggrieved, Aguilar and Calimbas filed a petition for review22 before
the CA on March 11, 2013. It was dismissed, however, in the questioned
resolution, 23 dated April 5, 2013, stating that the petition was formally
defective because the verification and disclaimer of forum shopping and
the affidavit of service had a defective jurat for failure of the notary public
to indicate his notarial commission number and office address. Moreover,
the entire records of the case, inclusive of the oral and documents evidence,
were not attached to the petition in contravention of Section 2, Rule 42 of
the Rules of Court.
A motion for reconsideration 24 was filed by the petitioners which
sought the leniency of the CA. They attached a corrected verification and
disclaimer of forum shopping and affidavit of service. They asked the CA to
simply order the RTC to elevate the records of the case pursuant to Section 7,
20
Id. at 124-132.
Id. at 50 and 56.
22
Id. at 27-49.
23
Id. at 135-136.
24
Id. at 139-145.
21
DECISION
Rule 42 of the Rules of Court. Moreover, the petitioners could not attach the
records of the case because the flooding caused by Habagat in August
2012 soaked the said records in water.
In the other questioned resolution, dated October 9, 2013, the CA
denied the motion because the petitioners still failed to attach the entire
records of the case which was a mandatory requirement under Section 2,
Rule 42.
Hence, this petition.
SOLE ASSIGNMENT OF ERROR
THE COURT OF APPEALS COMMITTED GRAVE ABUSE OF
DISCRETION AMOUNTING TO LACK OR IN EXCESS OF
JURISDICTION WHEN IT DISMISSED THE PETITION FOR
REVIEW FILED BEFORE IT BY THE PETITIONERS UNDER
RULE 42 OF THE RULES OF COURT CITING THAT THE SAID
PETITION IS FORMALLY DEFECTIVE FOR FAILURE OF THE
PETITIONERS TO SUBMIT WITH THE SAID PETITION THE
ENTIRE RECORDS OF THE APPEALED CIVIL CASE NOS. DH1300-12 AND DH-1299-12.25
The petitioners argue that contrary to the findings of the CA, they
substantially complied with the required form and contents of a petition for
review under Section 2, Rule 42 of the Rules of Court. There is nothing in
the provision which requires that the entire records of the appealed case
should be endorsed to the CA. Such requirement would definitely be
cumbersome to poor litigants like them.
They assert that they submitted the following pleadings and material
portions of the court records in their petition for review: (1) certified copies
of the decisions, orders or resolutions of the RTC and the MCTC; (2)
complaints against the petitioners attached with documents used by
respondent in its formal offer of evidence; (3) answer of the petitioners;
(4) order of the MCTC declaring the petitioners in default; (5) respondents
formal offer of evidence; (6) notice of appeal; (7) joint memorandum of
appeal; and (8) joint motion for reconsideration/new trial. According to the
petitioners, these pleadings and records were sufficient to support their
petition for review.
25
Id. at 14.
DECISION
26
27
Id. at 160-171.
Id. at 178-188.
DECISION
DECISION
facts. In dealing with the questions of law, the CA could simply refer to the
attached decisions of the MTC and the RTC.
Thus, the question in the case at bench is whether or not the
petitioners attached the sufficient pleadings and material portions of the
records in their petition for review. The Court rules that the petition was in
substantial compliance with the requirements.
The assignment of error 32 in the petition for review clearly raises
questions of fact as the petitioners assail the appreciation of evidence by the
MCTC and the RTC. Thus, aside from the decisions and orders of the
MCTC and the RTC, the petitioners should attach pertinent portions of the
records such as the testimony of the sole witness of respondent, the copies of
the cash disbursement vouchers and the PNB checks presented by
respondent in the MCTC. In the petition for review, the petitioners attached
respondents complaints before the MCTC which contained the photocopies
of the cash disbursement vouchers and PNB checks. These should be
considered as ample compliance with Section 2, Rule 42 of the Rules of
Court.
Second Procedural Issue
Nevertheless, instead of remanding the case to the CA, this Court
deems it fit to rule on the merits of the case to once and for all settle the
dispute of the parties.
The rule is that a court can only consider the evidence presented by
respondent in the MCTC because the petitioners failed to attend the pre-trial
conference on August 25, 2009 pursuant to Section 5, Rule 18 of the Rules
of Court.33 The Court, however, clarifies that failure to attend the pre-trial
does not result in the default of the defendant. Instead, the failure of the
defendant to attend shall be cause to allow the plaintiff to present his
evidence ex parte and the court to render judgment on the basis thereof.
The case of Philippine American Life & General Insurance Company
v. Joseph Enario 34 discussed the difference between non-appearance of a
defendant in a pre-trial conference and the declaration of a defendant in
default in the present Rules of Civil Procedure. The decision states:
32
DECISION
10
If the absent party is the plaintiff, then his case shall be dismissed. If it
is the defendant who fails to appear, then the plaintiff is allowed to present
his evidence ex parte and the court shall render judgment on the basis
thereof. Thus, the plaintiff is given the privilege to present his evidence
without objection from the defendant, the likelihood being that the court will
decide in favor of the plaintiff, the defendant having forfeited the
opportunity to rebut or present his own evidence.35
The pre-trial cannot be taken for granted. It is not a mere technicality
in court proceedings for it serves a vital objective: the simplification,
abbreviation and expedition of the trial, if not indeed its dispensation. 36
More significantly, the pre-trial has been institutionalized as the answer to
the clarion call for the speedy disposition of cases. Hailed as the most
important procedural innovation in Anglo-Saxon justice in the nineteenth
century, it paved the way for a less cluttered trial and resolution of the case.
It is, thus, mandatory for the trial court to conduct pre-trial in civil cases in
order to realize the paramount objective of simplifying, abbreviating and
expediting trial.37
35
Tolentino v. Laurel, G.R. No. 181368, February 22, 2012, 666 SCRA 561, 569-570.
United Coconut Planters Bank v. Magpayo, 473 Phil. 739, 746 (2004).
37
Paraaque Kings Enterprise, Inc. v. Santos, G.R. No. 194638, July 2, 2014.
36
DECISION
11
Id. at 96-97.
Id. at 102-103.
40
People v. Warriner, G.R. No. 208678, June 16, 2014.
41
G.R. No. 198660, October 23, 2013, 708 SCRA 571.
39
DECISION
12
JOSE CA
~NDOZA
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42
Id. at 584.
People v. Likiran, G.R. No. 201858, June 4, 2014.
44
First Lepanto-Taisho Insurance Corporation v. Chevron Philippines, Inc., G.R. No. 177839, January 18,
2012, 663 SCRA 309, 325.
43
13
DECISION
WE CONCUR:
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Associate Justice
Chairperson
~~;;
PRESBITERO )l. VELASCO, JR.
Assot'iate Justice
'
/
ATTESTATION
I attest that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion of the
Court's Division.
Associate Justice
Chairperson, Second Division
\./'
DECISION
14
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution and the
Division Chairperson's Attestation, I certify that the conclusions in the
above Decision had been reached in consultation before the case was
assigned to the writer of the opinion of the Court's Division.